Forum Fodder | Friday 09 November 2018
The roots of education are bitter, but the fruit is sweet - Aristotle
All the best for another week's continuing education!  
- Graham

LATEST CE...

Markets
The global impact of a Chinese recession
When China finally has its inevitable growth recession, the world is likely to discover that China's economy matters even more than most people thought.
Kenneth Rogoff, Harvard University | More

Philosophy | Markets
Ideal money
Buffett called Bitcoin rat poison squared, Schiller called it a financial bubble. We disagree. Bitcoin is perhaps the most important financial innovation ever. And it is one step closer to "ideal money".
Economics Team, Payden & Rygel | More

Strategies | Investing
Human + machine in investing is better than either in isolation
To future proof portfolios, you need human skill and judgment to distinguish between the purely random and real investment insights. This is the power of combining machines and humans.
Nick Thomas-Peter, Winton Group | 0.50 CE | More

Investing
Research Review: The investment behaviour of hedge funds
Two recent papers looking at hedge funds provide further evidence that the more proactive managers are the best performers.
Ron Bird, University of Technology Sydney | 1.00 CE | More

Finology
Building future-proof portfolios requires emotional agility
The future is, by definition, uncertain, as are financial markets. To prosper in such an environment, we need to be emotionally agile in order to align our values and actions and, in turn, help investors achieve their financial goals.
Susan David, Harvard Medical School | 0.75 CE | More

Markets
Markets Summit 2019 - The heat is on!
Markets Summit is THE investment markets scene setter of the year. Featuring 20+ international and local experts debating their best ideas on issues related to the medium-term outlook for the markets and implications for portfolios, it will help you understand the key investment market and asset class opportunities (and risks) ahead, to help you build better quality investment portfolios.
Mark your diary! Tue 19 February 2019, Sydney | More

Finology
Finology Summit 2019 - Investing beliefs, biases & behaviours
Finology Summit is THE behavioural finance ("fin") and investment psychology ("ology") program of the year. Featuring an exceptional faculty of experts, Finology Summit will help you better understand your own and other people's different beliefs, biases and behaviours around investing - and the impact on investment markets - to help you build better quality investor portfolios.
Mark your diary! Wed-Thu 20-21 February 2019, Sydney | More

RECENT CE...

Philosophy | Markets
Are financial crises unpreventable?
Banking and finance are an extreme case of governance and policy failures, where the abuse of power and lack of trust in institutions undermine capitalism and democracy.
Anat Admati, Stanford Graduate School of Business | More

Markets
Falling share prices and the US economy
It wouldn't be surprising if the 10-year T-bill rises to 5% or more in the next few years, taking real yields back to over 2%, and causing the P/E ratio for US equities to return to its historical benchmark.
Martin Feldstein, Harvard University | More

Strategies | Finology
When clients need more risk - adjust portfolios or goals?
Where portfolios are invested to achieve goals, the first step in the process should be to align the investor's goals - not the portfolio - to their risk tolerance. Implementing the optimal portfolio is then remarkably straightforward.
Michael Kitces, Pinnacle Advisory Group | 1 comment | More

Investing
Owner-managed companies are the backbone of a good portfolio
Research shows that owner-manager businesses reward their long-term (non-family) investors because they instill a stability, a culture, and a focus that is geared towards the long term.
Matt Williams & Emma Goodsell, Airlie Funds Management | 0.50 | More

Markets
The world economy is facing a geopolitical inflection point
Ex-CIA Acting Director and economist, Morell worked with six US Presidents including directly for Bush and Obama. He explains the current geopolitical inflection point that will affect the world economy for a very long time.
Michael Morell, Beacon Global Strategies | More

Draw downs
No investment strategy or portfolio is of course guaranteed... but surely should be aiming (not guarantee'ing) to generate returns closer to your 7%pa return with minimum draw-down risk, rather than allowing markets to dictate if a client can retire...
Fergus Hardingham, FM Financial Solutions | More

Markets
America's inflation risks
It was inevitable. Another upturn in the US inflation cycle is at hand. The Fed is entirely correct to send the message that there is considerably more to come in its current tightening cycle.
Stephen Roach, Yale University | 1 comment | More

Markets
Storm clouds for 2020
We give a 20% chance to a US corporate debt bubble burst before end 2020. It's both incredible and unconscionable that massive leverage could once again bring down Main St a mere decade after 2008.
Woody Brock, SED | More

Strategies | Investing
Using Australian Asset Backed Loans in portfolios
Potential returns on traditional assets are falling and the search is on for different sources of attractive returns. The Australian Asset Backed Loans asset class deserves a place in many portfolios.
Tim Farrelly, farrelly's Investment Strategy | 1.00 CE | More

Philosophy | Strategies
Impact investing is the way of the future for fixed income
It is a common misconception that profit and impact are mutually exclusive. In fact, managing for mainstream risk-adjusted returns and creating a positive environmental or social impact can be achieved in parallel.
Affirmative Investment Management | More

Markets | Strategies
Valuation mistakes will prove very costly in a post QE world
Future proofing portfolios is a difficult task, due to today’s demanding valuations and because the future is intrinsically unknowable. There are no set-and-forget strategies in a world of ever-changing prices.
Philipp Hofflin, Lazard Asset Management | 0.25 CE | More

Great stuff
Spot on Annika... designing the "optimal" portfolio is structure dependent.
Michael Furey, Delta Research & Advisory | More

Keep up to date - follow us @PortfolioForum
There's no need to wait until our weekly Forum Fodder email to know what's new with Portfolio Construction Forum. Just follow us on Twitter to hear as soon as we release new articles on portfolioconstructionforum.edu.au and when registration opens for our onstage programs.

Connect with me on LinkedIn
We also let my LinkedIn network know as soon as we release new articles on portfolioconstructionforum.edu.au and when registration opens for our live programs. If LinkedIn is more your thing than Twitter, I'd welcome you connecting. And of course, I'd welcome having an offline direct conversation with you any time.